With regard to works transferred by living artists, it should be remembered that the sale in country or in another Member State of the European Community or the export of works created by the artist and being the subject of a property continue 54 since inception is outside the scope of the tax. The profit made constitutes taxable professional profit in the category of non-commercial profits.
Note that this diet is relatively favorable compared to that applicable in both Great Britain and the United States:
In Britain, the capital gain is taxed at the marginal rate at which the seller’s annual income is taxed. Most often, this rate rises to 40%. It is payable by the seller on the sale of most works of art auctioned, except those priced under £ 6,000, or whose life expectancy does not exceed 50 years.
It is calculated on the difference between, on the one hand, the proceeds of the sale less costs, and on the other hand, the original purchase price updated to take account of inflation. If the work was acquired before March 31, 1982, the purchase price taken into account consists of the market value of the work at this updated date. The tax is due by any resident subject to an annual deductible of 6,800 pounds. The use of the online sales tax calculator is important.
In the US, there are two types of capital gains tax:
At the Federal level, for individuals the federal capital gains tax rate is 28%, if the property has been held for more than 12 months. The base is calculated by making the difference between the sale price and the discounted purchase price; for merchants, the gain is treated as part of their profit and is taxed at the federal rate of 39%; finally, for corporations, the tax rate is 35%, unless the property is part of their stock in which case it is taxed at the standard rate of federal corporate tax.
At the local level, capital gains are taxed in the seller’s state of residence at rates varying between 0 and 18%.
We can therefore say that country is in this respect and for once in a relatively favorable situation.
The mechanism of the Sales tax works both against the French art market and against heritage. The phenomenon is widely denounced by professionals with regard to import Sales tax; it is less visible but no less real in terms of Sales tax on margins.
Import Sales tax
Until 1991, the importation of art goods for public auction sale was exempt from Sales tax. The law of July 26, 1991 put an end to this exemption. The 7th European directive, adopted in Brussels on February 14, 1994, was transposed into French law by the law of December 29, 1994, which confirmed the application of Sales tax to works of art, collectibles or antiques imported into country to be sold at auction.